EU envoy wrongfully calls for end of NEP

The special envoy for the EU to Malaysia, HE Thierry Rommel made a nasty sweeping statement against the National Economic Policy, an affirmative action plan adopted and implemented by the Malaysian Government since 1971. He said this infront an audience of local and foreign businessmen which surprised many. He also urged the Malaysian Government to rescind the NEP, a protectionism and discriminatory practices against foreign firms.

The Associated Press has the story:

June 21, 2007, 4:48AM

EU envoy blasts Malaysia’s NEP

KUALA LUMPUR, Malaysia — Europe’s top envoy to Malaysia Thursday urged the government to roll back its affirmative action policy for majority Malays, saying it is discriminatory and amounts to protectionism against foreign companies.

In unusually frank comments that ignored diplomatic niceties, Thierry Rommel openly criticized Malaysia’s 37-year-old New Economic Policy, or NEP, that gives a host of privileges in jobs, education, business and other areas to ethnic Malays.

“In a dominant part of the domestic economy, there is no level playing field for foreign companies,” Rommel, the ambassador and head of the European Commission Delegation to Malaysia, said in a speech to local and foreign businessmen.

Ethnic Malays and other indigenous groups, known as Bumiputras, comprise more than 60 percent of Malaysia’s 26 million people. The government says they have a disproportionately low share of the corporate wealth compared to the minority Chinese, and need the NEP to increase their standard of living.

The government did not immediately respond to Rommel’s comments.

Rommel said the government is using the NEP as an excuse to practice “significant protectionism of its own market,” including the automotive sector, steel, consumer goods, agricultural products, services and government contracts.

Malaysia claims these are “infant” industries that need to be protected but “in reality .. it is the Malay-centered Bumiputra policy that drives protectionist policies,” Rommel said.

As part of the NEP, all public-listed companies are required to allocate 30 percent of their shares to Malays. Companies without Malay directors or employees are excluded from lucrative government contracts. Employers have quotas for hiring Malays.

Eric Reuter, sales and marketing director of freight forwarder ABX Logistics, said the Belgium-based company has a 51 percent Bumiputra partner and is required to work with local companies on government-related projects.

The limitations have eroded his profit margin, he said.

“We cannot be as flexible as we want to be and chances that corruption comes into play is higher. It is an interruption to the free market,” Reuter told The Associated Press.

Besides foreigners, minority ethnic Chinese and Indians also see the NEP as a discriminatory tool. Many Malays also have complained the policy has benefited only a few well-connected people.

NEP was started in 1970 when the Malays’ corporate ownership was 2 percent. The aim was to raise it to 30 percent by 2010, from 19 percent now. Chinese, who form a quarter of the population, control 40 percent of corporate wealth.

Rommel stopped short of saying the NEP should be scrapped but told reporters separately: “We (in Europe) have bitten the bullet on a number of sensitive issues, why can’t you?”

He warned the NEP could “lead to problems” in free trade negotiations between the EU and the 10-member Association of Southeast Asian Nations, of which Malaysia is a key member.

The two groups agreed last month to launch free trade talks, which could raise ASEAN’s exports to the EU by up to 20 percent, Rommel said. Senior officials are expected to hold their first meeting in Vietnam next month, he added.

Apparently Rommel did an “Al Gore” and “John Mallot” here. He defied protocol and insulted the host. On top of that, his information is grossly incorrect and easily regarded as something with malice.

The truth is far from what Rommel claimed to be. Too many foreign owned and managed firms flourished the past 37 years doing business here in Malaysia and were not subjected to the NEP. Foreign owned firms like Shell, Standard Chartered, OCBC, Unilever, Fraser and Neave, Nestle, IBM, Motorola, Texas Instruments, Intel and all the likes operated without having the mandatory Bumiputra partner and flourished significantly. Private European owned firms like Boh Plantations Sdn. Bhd, was established since the Russell brothers in 1908 and Tan Sri Borge Bek Nielsen’s United Plantations Bhd. were never subjected to NEP.

More than 80% firms in listed in the Bursa Malaysia do not even meet the so called 30% mandatory Bumiputra ownership and still do business as usual.

The fact is that the NEP is an affirmative action, adopted by the Malaysian Government in 1971, derived as a consensus after months of national level consultation with all political parties representing all ethnic and multiracial interests (with exception of the DAP!), to alleviate poverty and restructure socio economic level of the various ethnic group and the gap that exist between them. Education, infrastructure and economic development programs have been identified, carried out and still continue since it was launched by the second Prime Minister, Tun Razak Hussein.

Infrastructure and economic development programs successfully carried out under the NEP actually have laid the economic fundamentals and foundations for the various and multi-layered economic transformations seen. This was also the basis for the country to go for bigger and more sophisticated industrialization programs.

Even with the NEP in place, Malaysia’s economic growth was recording excellent figure, that it create a new hope and potential of where it will take the nation. In 1991, then Prime Minister Dato’ Seri Dr. Mahathir Mohamad launched an ambitious “Vision 2020” policy to propel Malaysia into a newly industrialized country status by 30 years. Economy was targeted to have a steady 8% annual growth during that period. Of course, a lot of fresh investments poured from all over the globe, especially in the manufacturing sector.

HE Rommel’s incorrect outburst was really unnecessary and regarded as undiplomatic etiquette. In fact its outright “Kurang Ajar”! The whole country should rise and defy this attempt to insult our nation with a notion of inaccurate concept and whole context articulated poorly. If this EU team of ten diplomats really regard Malaysia as an important ‘ally’ for ASEAN-EU bilateral relations, then at least there should be an immediate statement of revocation and followed by an unconditional apology.

Otherwise, one of these days, maybe one of our statesmen make a damaging voracious attacks against EU’s own protectionism policies, discriminating under-developed countries products with non trade barriers such as environment or labour issues. Of course, he reciprocate this outburst at a significant event somewhere in Western Europe.

 

* An update as of 2300hrs, Saturday 23 June 2007.

Deputy Prime Minister Dato’ Seri Mohamed Najib Tun Razak, the son of the NEP founder 2nd Prime Minister Tun Abdul Razak Hussein, came out strong against Rommel’s calling to dismantle the NEP.

Bernama.com has the story:

June 23, 2007 20:03 PM  

Don’t Meddle In Malaysia’s Domestic Affairs, Warns Najib

KUANTAN, June 23 (Bernama) — Datuk Seri Najib Tun Razak expressed regret over the statement by the Ambassador and Head of the European Commission Delegation to Malaysia with regard to the New Economic Policy (NEP), saying that the envoy should not interfere in Malaysia’s domestic affairs and policies.

Refuting the facts presented by the envoy, the Deputy Prime Minister said that as an ambassador accredited to this country, Thierry Rommel should play a role to forge closer relations between the two countries.

“Normally, an ambassador or envoy does not comment on the affairs of the country they are accredited to. This has been the practice because when we comment on the policies adopted by the country concerned, it means that we are interfering in the affairs of the host country,” he told reporters after launching the national level Campaign On Early Intervention To Prevent Children’s Disability, here.

Najib said this when asked to comment on Rommel’s remarks on Thursday which were carried by foreign wire agencies.

A foreign wire report quoted Rommel as saying that the government was using the NEP as an excuse to practise “significant protectionism of its own market” and urged the Malaysian government to roll back its affirmative action policy for the Malays.

The foreign news reports had stated that the NEP gave a host of privileges in jobs, education, business and other areas to ethnic Malays.

As part of the NEP, all public-listed companies are required to allocate 30 per cent of their shares to the Malays. Companies without Malay directors or employees are excluded from lucrative government contracts, the report said.

On Malaysia’s action or official protest against the statement, Najib said: “Wait first, I will seek the opinion of the Foreign Ministry.”

“The role of an ambassador is to forge close relations between the country he represents and the host nation. In terms of diplomatic principles and practices, Rommel’s remarks contradict the practice that we adopt.

“What was raised can certainly be disputed factually,” the Deputy Prime Minister added.

— BERNAMA


Published in: on June 22, 2007 at 05:21  Comments (34)  

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  1. I value your opinion but I’m afraid that posts after posts you are walking blind. Sorry but am a foreigner here since more than 10 years and I see things the same way. Business can very obviously not be made freely in Malaysia, corruption is everywhere and at all levels from top management to smaller level acceptance committee member. It is not as bad as in Thailand but Malaysia comes right after Indonesia on the corruption scale I have lived. Tenders require to work with local companies with only one objective which is to control bids, increase the cost to Malaysian tax payers towards enriching a few Malaysians. Since you are in doubts, I’ll be happy to show you true life examples of goods in my business being sold 3 to 4 times the price I would have offered directly if not forced through local partners. This is your tax, from your own pocket but if you want to continue walking blind and support against all odds, your call.

    There is an obvious trend in Malaysia, companies are divesting from Malaysia, only low level manufacturing jobs are kept in low cost areas. Everything else is too difficult and the growth is just not here anymore to justify we play along with all the rules set with doing business in this country. Your success stories I’m afraid are things of the past.

    Just becoz you and/or your trade do badly and resorted to these “unjust” trade practices, doesn’t mean the whole country is like that. Of course I am walking as a blind, even when I did work for a very important EU based high technology conglomerate and our products are being sold (can ONLY be sold) to the “stupid Malaysian customer”, who is actually the Govt, for three times what it is sold to the next non corrupt EU leaders! (I am beginning to think now that I wasn’t be given enough bonus then!)

    If the success stories I hv mentioned was only worthy in the past, then we had 37 years of really lousy “bad business practices” and the West business committee kept being “tricked” over and over again, for 30 over years by a lot of highly skillful con artists to lure them, including Fortune 500 into making investments and doing business here. So many parties from all over applied for all sort of banking, investment, insurance licenses (the new FDIs into Malaysia – capital market). Retail business like Jusco will be opening their largest retail outside Japan, VW seriously looking at Proton (an industry where too many really what to say fail!).

    Malaysia is the world’s 17th most important trading nation. Still is. We don’t get there by chance and still maintaining that position

  2. Who is the “Anwar Ibrahim” this time?

    Looks like Musa bin Hitam is the culprit here. Also, Anwar Ibrahim is still playing the same role 🙂

  3. “Malaysia is the world’s 17th most important trading nation. Still is. We don’t get there by chance and still maintaining that.”

    Malaysia slipped to 19th in 2006….. By the way, who is first ? A country which is not even one according to one of your minister.

    It does not matter 17th or 19th or even 29th! The fact that Malaysia is trading bigger than some important members of EU and EU itself regard Malaysia as an important “trade partner or ally” already shown that Rommel is wrong.

    At the end of the day, money talks and bullshit walks!

  4. […] Clark Link to Article al gore EU envoy wrongfully calls for end of NEP » Posted at The “thirteen […]

  5. I agree with one of my commenters who said this guy Rommel is insulting the legacy of Tun Razak. Razak’s son is now the DPM and should not take this sitting down.

    I also agree that the NEP needs a thorough review. The problem is I don’t trust the goons sitting in those think-tanks. They might do the NEP in to benefit themselves and their corporate buddies and their corporate buddies’ political masters.

    The problem is, these people and many of young Malaysians themselves do not know how to appreciate people like Tun Razak. Their ignorance to history and complacent attitude which failed to recognize all what we are enjoying at the moment (better quality of life etc) is an investment others painstakingly put sometime ago and we did not hv much resources back then.

    The NEP need a good review and implementing the various programs need new approach to deliver. But who and how will it be reviewed is very important also. I do not agree if the NEP were to be left to the hands of people like Bina Fikir and Ethos Consulting. They will provide extrapolated and artificially adjusted-fit-to-size solutions from the West.

    As they say in Malay, we have to “….ukur baju dibadan sendiri”. Maybe we need to know are we actually 5′ 8″ or 5′ 6″……FIRST! 🙂

  6. pls check your facts about 80% of the firms listed on the stock exchange does not have the 30% bumi quota. firstly, for all main and second board listing, there is a mandatory 30% bumi content for IPO without exceptions. for the smaller mesdaq market, the requirement is also there once certain conditions are fulfilled. so, bid dog just wanna asked how do you derive the 80% figure?
    Secondly, this bumi content issue has been raised as one of the possible barriers to further develop the local stock market. look at our market capitalisation compared to our main regional peers in Singapore, Hong Kong, India and Korea. Our stock exchange is lagging, period. Increasing firms are now being privatised and dont be too surprise that these firms will in due course relist in other more efficient and less onerous stock markets. In an increasing borderless and flat world, money will find the markets that gives the highest return.Longer term, if we continue to impose unnecessary onerous conditions that render us uncompetitive in the real economy, its the general public ( not the few elitist who benefit from the discriminatory policies) that suffers with lower standard of living. I dont know about you but I am already feeling the effects now with my income not running ahead of the higher living cost. The symptoms are already there and if are not careful by continuing with wealth destruction policies, we may end up comparing with those poor countries in this region.

    That is what they said 22-23 years ago, when we had our first economic recession. In mid 80s when the MCA sponsored deposit taking co-operatives went belly up, many Malaysians say it was doomsday for Malaysia lurking round the corner. But we prevailed. We actually came out stronger in the 90s.

    Only people want to see the NEP end will cook up all sort of ghastly stories based on their economic textbook knowledge where as in real practical terms, implementing NEP programs actually played a lot catalystic role in transforming the Malaysian economy for the last 35 years.

    The truth is that, many people in West never imagined we, a former colony, are able to have a real workable politically induced affirmative action plan, that actually developed the economy progressively, improved and alleviated socio-economic standing of the under developed majority, successfully minimized poverty and build economic development foundations, all with the same stroke!

    Of course they say it will fail. Just like everything else. The symptoms had been there all the time. Just like 9 years ago when they say in no time the economy will crumble when we imposed our own solution of Capital Controls and economic crisis remedy. And all those Malaysian skeptics also easily bought into these lemons, incl a vehement economy opposition Prof Jomo K Sundram later admitted we had a good and practical solution going!

    I say, let the economy fail then. But it never did. In fact, it always gets better. Much better!

  7. A very large part of Malaysia’s exports consists of manufactured industrial products, especially electronics. The most important reason for its tremendous growth in the 1990’s was Dr. Mahathir’s decision to exempt the export industry from most of the NEP’s requirements – foreign companies manufacturing 100% for export can retain 100% foreign ownership, they are given a free hand in hiring the best people they can find, free to select the most appropriate suppliers and contractors for their business – little or no racial quotas.

    Is the NEP a drag on the economy – Yes – the evidence exists in Malaysia itself, as you can see above.

    In my opinion the most important issue with the NEP currently is its implementation. Contracts, suppliers, are being awarded mainly to politically connected people. No open tenders, inflated costs.

    Contractors failing to deliver, or delivering shoddy workmanship get re-selected for new projects.
    Politicians pocketing their required 5%, 10%, 15%.

    How much is the billions of Ringgit of government expenditure, mega projects benefitting the average rural Malay ?

    The system is not new. The past 25 years, too many programs successfully launched and too much benefited out of it. It never failed the country as the Malaysian economy expanded.

    Politicians really pocketing 5%, 10%, 15%? Are sure? So many love to say this over and over again but then again, there is no admissible shred of evidence. Its just one person’s unsubstantiated opinion against another and it goes on and on and on, endlessly. Its like when anyone watch tv or movie, they hv a preconceived expectation.

    Shoddy workmanships? I would blame the consultants hired for the project. They are suppose to weed these issues out.

    Mega projects brought too much spiral effect for the rural Malays. For example the North South Highway a single most important catalyst in the economic development and transformation and social development of the people in the West coast of Malaya. The North-South double tracking system. It was designed as an efficient logistic system to mobilise agriculture & perishable produce from the interiors (along the line) right to PTP and immediately export. Another mega project was the development of new hospitals in places like Alor Star, Sg Petani, Temerloh, Kluang, Ulu Tiram & Sg. Buloh. Then there is the school projects.

    Its how anyone look at things. Half full or half empty!

  8. “Politicians really pocketing 5%, 10%, 15%? Are sure? So many love to say this over and over again but then again, there is no admissible shred of evidence. Its just one person’s unsubstantiated opinion against another and it goes on and on and on, endlessly. Its like when anyone watch tv or movie, they hv a preconceived expectation.”

    que sera…sera…whatever….Corruption is the “unsubstaintiated” disease we like to pretend we know not of…weed in out in true honesty and we can tell that foreigner to stop meddling in our bussiness and go check his own messy backyard !

    Prove it! Don’t just talk about ghost stories BUT catch the ghost FIRST! Loose worthless unsubstantiated talks really something no one can refer to, just merely biased opinions. Just like the Loch Ness Monsterball or Big Foot. Go and get one and then everyone can say, it exist.

    Of course, you can’t! So don’t make conclusion what ever your claims based on things you cannot substantiate. People like can easily shoot it down and there is no way you can make your story hold water.

    So talk about the stories you can substantiate.

  9. numbers dont lie. look at our income level which is comparable with that of Taiwan, Korea and Singapore in the early 1970s. today, their per capita income is at a minimum a few fold ahead of us. Could have not done better as we are endowed with such good resources such as oil, rubber and oil palm? And look at the declining FDIs. We are not competitive for low end products but our human capital is not there for us to move up the value chain. And the latter is to a large extent a consequence of our NEP policies.

    Look, the NEP is like an albatross on our neck, period. In an increasingly borderless world, running a business based on ethnicity instead of merit is courting disaster. And running a government is no less than a business. sure, the country may not crumble but is our economy growing at a optimum level? To grow at 5% to 6% level, we have to consistently depend on the government largess and pump priming and consequently run a big budget deficit. How long can the country continue this way before financial disaster strikes as our Ringgit does not have an Uncle Sam face on it?

    As it is now, a terrible price has already been paid judging by the big lag in income level compared to our aforesaid regional peers. How much more do we have to pay?

    Meritocracy has to be the mantra going forward else there is one sure end result in the long term which is for the country to be a laggard.

    Numbers can be crunched into what people want the numbers to be. No, Malaysia’s GNP per capita is far below Korea’s, Taiwan and especially Singapore’s, in the 1970s. This is utter nonsense!

    Then again, Malaysia has other issues that have to be tackled, unlike Korea, Taiwan and especially Singapore. Bigger land area, mass body of water in between, remote rural areas etc. So not comparable to Korea, Taiwan and Singapore. Maybe better compared to Burma, Cambodia and Thailand.

    Who can say what the economy optimum level is? Too many “if”s! The monetary policy had been a developmental economics policy. Its lousy and the Government will go bankrupt? For over 25 years the skeptics keep playing the prophet of doom role, over and over and bad news is, IT NEVER CAME THROUGH! In fact the Government have had substantial growth in their deliverables!

    All these prophecies of doom are just figment of their morbid imaginations, envious of the affirmative action national developmental economics policy developed in middle of an economy of primary resources managed to transformed the nation into an almost newly industrialized nation, within 30 years (considering having to go through two vicious economic crisis in between). Then again the same affirmative action national developmental economics policy is now being carbon-copied by so many third world and under developed countries, incl South Africa.

    NEP is a national developmental economics policy, accepted by the rakyat and the same rakyat voted for it, over and over again, in every General Elections since 1974. So respect the wishes of the majority!

  10. A better way for Rommel to have put it would have been to say NEP restricts an open market even for citizens of this county. NEP is a racist policy.

    Utter nonsense! How can NEP be a racist policy? The programs under NEP include providing the rakyat with free or near free education and medical services, at the closest proximity. Also electrification and water and sewerage service for people in the rural areas.

  11. BigDog,

    You are right bout many foreign companies flourishing here, do you want to know why? Those companies practices anti-NEP policies. They dont give out tenders to bumi companies they give it out to the best company. These companies were opening sites in Msia because they were cheap. Now China has become cheaper and we are losing our competitive edge. I know because I have work in enough foreign company to know upper management on Msia site.

    BTW Korea and Taiwan are countries with missle pointing at them and they still manage to flourish past msia. The reason, no brain drain there. You opinion on NEP is so one sided as I assume you must be an UMNO member and receiving all the privileges of a bumi. I think I am far worse compare to you but just because of birth I have less privileges which I think is BS. WHy should anyone have more privileges on the ground of race? Aren’t we all malaysian? If you have tasted life as a non-bumi maybe you would understand why there is such disdain to NEP.


    The New Economic Policy (NEP) is an affirmative action plan where national developmental economics programs like education, improving quality of health like providing basic infrastructure and health, national integration, security, communications and developmental economics are being systematically carried out to alleviate the socio economic level of the majority of under developed Malaysians.

    If you focus NEP as “dishing out contracts”, then you are BLOODY WRONG! PERIOD!

    Majority are ‘privileged’ because the rakyat VOTED a Government which focused on developmental economics to make sure the socio economic standing and quality of the majority is being uplifted systematically.

    BTW, Taiwan and Korea have different focus and agenda for their people. So unfair measure the needs of the majority of the Malaysians with direction of people in other lands.

    Brain drain???? Is there a serious lacking of skilled and educated labours in the country? But then again, if some people think they are some smart alecs and bitch almost everything this country every single damn day should leave and find greener posture and fortunes elsewhere. Infact its better for everyone!

  12. […] EU envoy wrongfully calls for end of NEP The special envoy for the EU to Malaysia, HE Thierry Rommel made a nasty sweeping statement against the National […] […]

  13. The Al Gore comparison is way off, mainly because Al Gore stepped foot in Malaysia barely a few days if that long, and was rightly viewed as an interfering outsider. Rommel, meanwhile, has been in the country for at least four years, immersing himself in our culture and politics. If there’s any foreigner who has the right to level criticism at the government (regardless of whether we feel it is justified or not) it’s him.

    No ‘if’s! A foreigner, especially someone in the diplomatic corp officially and formally representing the people and state/s should be “diplomatic” (hence, the word!) and maintain civility in foreign relations.

    What if this incidence is deemed “Kurang Ajar” not by just BigDog BUT Wisma Putra and retaliated by withdrawing ambassador status to the EU? Will it be better for Rommel?

    Again, no ‘if’s!

  14. Hi Big Dog,

    que sera…sera…whatever….Corruption is the “unsubstaintiated” disease we like to pretend we know not of…weed in out in true honesty and we can tell that foreigner to stop meddling in our bussiness and go check his own messy backyard !

    Prove it! Don’t just talk about ghost stories BUT catch the ghost FIRST! Loose worthless unsubstantiated talks really something no one can refer to, just merely biased opinions. Just like the Loch Ness Monsterball or Big Foot. Go and get one and then everyone can say, it exist.
    ______________________________________________________

    I suggest you view Malaysia-Today/RPK blogsite

    to see that coruption is not “ghost stories”


    Exactly my point. That’s still here, in the virtual world. Anyone can say anything. Anyone can fabricate anything. Go and catch the ghost. Do the Kasitah Gaddam or Saidin Tamby. If corruption is so bloody rampat, as so many people want to believe and paint the ugly picture, there should be too much more! But there isn’t. Only ghost stories, one after another.

    I hv faith in the AG’ Chambers. No ghost caught means there is no ghost!

  15. good grief, you talk as if minorities have no rights. and your arguments sound so nazri-like..everything else is so stupid. of course asking those to leave if they are unhappy sounds so similiar echoing from those of the keris brandishing fratenity. well, i am certain that down the road more malaysians regardless of race will stand up to this discriminatory policy which only serves to enrich the select few elitist.

    What minorities right have been denied since Government implement NEP????

    The minorities not allowed to own properties? The minorities not allowed to own businesses? The minorities not allowed from making money? The minorities not allowed to own assets and buy into plc? The minorities not allowed to own newspaper company? The minorities have been given restricted travel orders? The minorities not allowed to have the their place of worship? The minorities not allowed to use their own language, mandatory change their name? The minorities denied to participate in the process of democracy? The minorities not represented in the Cabinet/Government?

    Utter bollocks!

    NEP is about a program to developed the under developed majority. Any minority who refuse to understand and/or accept the NEP policy put in place by consensus of all parties (except DAP), endorsed time and again through the process of democracy, should pack and leave and find home at another land where every damn thing is agreeable to them!

    Yes, this is Nazri Aziz way of treating Kurang-Ajar minorities!

  16. Big Dog,

    The world is changing. Umno is not.

    Wake up.

    It doesn’t matter. The world don’t give a hoot about the underdeveloped Malays in the rural areas that need instrastructural, utilities, education and developmental economics attention.

    BTW, the last General Elections, UMNO gets 110 MPs voted in the 219 seat Dewan Rakyat. There is NOT SINGLE ONE representing “the changing world” there!

  17. Sdr. Big Dog,

    I am not a Malay. I am, however, a Malaysian. I can’t speak my mother tongue, only Malay and English. I have a business (Thank You so much UMNO for allowing a member of the Kurang Ajar minority like me to own freehold land and to run a business) and a sizeable government contract (again, Thank You).

    I had to take on a Malay partner to get the contract. The land is mine, the buildings are mine, the contract is in my name and I pay all the utility bills. At the end of the month, he takes 60% (via a side agreement, if I dont comply, the YAB in the government will take away the contract) and I take 40%. My expenses come out of my 40% share including paying back the bank.

    My Malay partner has 2 other similar businesses with other people via a similar “profit sharing” agreement. All he does is sit in his office and wait for the monthly claims to come in.

    Sdr. Big Dog, is this what the NEP is supposed to produce? I am all for helping the needy, poor and underprivileged. But enabling fat UMNO cronies to get even fatter is definitely not right. This country is doomed if this policy continues in this manner.

    By the way, I want to leave Malaysia, but can’t. You see, we Kurang Ajar minorities pay back our loans first. We dont simply borrow money, like for example, MARA students and then refuse to pay them back. We honor our debts. After I have a clean slate, trust me, we will be leaving this country.

    Ok, you will say that I should be grateful for my 40%. And I am. 40% is better than 0%. Thank you UMNO!!!! Thank you Tuan! I just have this two questions to ask you:

    Adakah ianya halal untuk mengambil wang / “duit atas angin” daripada hasil titik peluh orang lain? Adakah ini dasar NEP?

    Salam hormat,
    Minoriti Kurang Ajar

    Sorry to say, but you are too stupid to get into circumstances what you are in. Too many expats I know do business in Malaysia without local partners (whether Bumiputra or non Bumiputra) and give any form of “kickbacks”. Since you are not that smart, so live with that sort of arrangements and don’t complain!

    Hahahhahahahahahahahahhahahahahahahahhahahhahahahahahahahhahaha 🙂

    Not all people take study loans don’t pay back or refuse to live up to their obligations. I have been paying my MARA study loan and still paying. When my wife voluntarily reported herself to JPA, they released her unconditionally even though she was sent abroad to study specially for a specific function in the Civil Service.

    Dasar NEP did not specify specifics how it should be implemented at super micro level.

  18. Saya baca habis semuanya. Saya hormat semua hujah Saudara. Mcm mana nak kata tak tau, but i like the flow of your rebuttal. Aku pun bukannya reti cakap orang putih…

    Tapi bab hantu tu, tak semestinya benda yang kita tak nampak itu tak ada.

    Ia macam sesetengah Tok Guru (sebenarnya tok haru) yang kata, “ana tak pernah jumpa hadith tu…”

    Tak jumpa tak semestinya tak ada. Harap tak terusik sangat dengan pandangan ini.

  19. big dog, you challenge almost every comment and with long winded answers too. Wow ,everybody is wrong and you are right.

    I am defending an agenda what the majority of Malaysian voted and supported, every single General Elections since 1974.

  20. insofar as I know, there are a lot of bumiputras who disagree with your views too and I guess they are also kurang ajar minorities. well, I wont stoop so low as to call others kurang ajar who so happens to disagree afterall when is the last time there is unaminity in contentious political issues.

    thanks big dog, at least i know you are in the same company as Nazri. Theres no point in posting in your site unless there is a convergence of views since it is clear there is a distinct lack of tolerance for opposite views on your part. guess, in your mind, good riddance. so be it, then and best wishes big dog in your endeavours. I mean it coz I hold no malice despite what you have said.

    People like you simply refuse to understand NEP is about poverty eradication, improving socio-economic level and developmental economics programs. Period!

    So people like me resort to Nazri Aziz like attitude in engaging people like you, on what the majority voted every single time since the 1974 General Elections!

  21. Wah…you are back at your best!
    Really miss your time back then in KMU…you replied all the stupid nonsense comments/rants with your flowing intelligence.
    I placed you on the highest regard…go on bigGum…you are a true leader!

    Thanks. This is the Perjuangan so many should stand up for! 🙂

  22. free or near free education to whom? you’re telling me there was no such thing before the NEP?

    If the NEP would be all equal why wasnt the Felda scheame set up for all Malaysians and not only for Malays? Why set up MARA’s not for all Malaysians? Make the change now then if possible. Make a new NEP for the 21st centuary Malaysia. A NEP which helps the underprivilaged of all Malaysians. Now that would be something to cheer for.


    The New Economic Policy (NEP) is not for the under developed Malays only. There are participants of FELCRA schemes who are not Malays (Indians mostly). Portuguese community in Melaka enjoy special schemes to buy ASB shares under PNB, since more than 20 years ago.

    MARA was formed under the MARA Act. Means it was enacted by Parliament. Means the representatives of the rakyat voted to a Bill and majority rules. Even operating under the decree of a Parliament act to develop the Malays, MARA did open their doors to deserving non Bumiputras as well. I have had Chinese & Indians classmates in MRSMs since 1973 (that was 34 years ago!!!!) and it is still ongoing. They even get full MARA scholarship to study abroad! One Chinese lady Florence Tan studied till her PhD in technology in the US, with full opportunity to develop herself that even NASA employed her. Now in Houston, Tx

    Sorry for your shallow analysis and utter complete ignorance!

  23. You still didnt answer my question: Is it halal to take free money from other peoples hard work and efforts? Malays always harp on halal and haram issues…haram this, haram that, haram haram haram. Is it halal to profit from my suffering?

    You put yourself into the “suffering” circumstance. Other people do it and don’t have to suffer. So, live with it!

    BTW, I am not obligated to answer you anything. Especially not the way you expected to be answered!

  24. Sigh, commonsense tells me to let this go…but anyway, here it is: I AM living with my suffering. I have told you that in the original comment. I do not expect to be answered in any special way, just the truthful way. Or does the truth hurt? It’s your blog, it’s your opinion. Is it so difficult?

    Precisely! You are too stupid & gullible to get into that kind of arrangements (as you call it “suffering”), so why complain to me? I did not get you there. You got yourself there, with your eyes opened and yet you went along with it anyway. Other people do businesses too, even expats and they supply all sorts of products and services to all sorts of Government agencies without restrictions, what so ever.

    Just live with it or pack and leave!

    P/S: Can you please give me your number? I would love to have someone like you as my business partner

    Hahahahhahahahahahahahahhahahahahahahahhahahahahahahahahahahhahahahahahahahhahahahahaha 🙂

  25. The objective of NEP is to be lauded. However its implementation has left much to be desired.

    Instead of benefiting the privileged few with the connections the allocated share should be given to Malay cooperatives where all Malay employees should belong. This way the benefit would be spread to benefit as many Malays as possible.

    At the moment the privileged few would have to resort to Ali Baba arrangements in which only the few non-Malays with connections benefit.

    So the many non-Malays complain unfairly blaming the many Malays who have only their jobs to cling to.

    With a shrinking economic cake the country is now experiencing as more and more foreign investors bypass Malaysia for other Asian countries such as China, Vietnam and Singapore, the dissatisfaction and frustration are growing at the expense of the many non-Malays and Malays.

    Therefore it is imperative that a more equitable economic policy and formula be drawn up to benefit the many Malays and non-Malays for the continued wellbeing of the country.

    In the Malaysian context, any meaningful dialogue should begin with the unequivocal acknowledgement of Malay political dominance and institutions in the country to allay Malay phobia.

    An analysis must then be made to government contracts and tenders, transportation (it has been decreed as a Malay preserve), manufacturing (many non-Malay plants are unlicensed for obvious reasons) etc for the most effective and equitable ways to benefit the many Malays and non-Malays.

    Without such a starting point we can talk until the cows come home, inflaming emotions unnecessarily.

  26. Hey bigdog,
    whats happening to you and why so defensive ?
    chill man..
    Cheers !

    Why shouldn’t I be defensive? So many factually wrong.

  27. hahahaha bro BGDC salute to you … they only like to critic and say blindly … when you critic them back , they get angry and call it defensive .

    and still this people always like to shout democracy … i wonder what democracy in their mind , when we cannot critic them back .. huuuuh scared hah

  28. Im sorry if Im shallow and uneducated, but doesnt Bumi discounts for houses and stock quotas seem to be targeted to benefit only a certain section of the population of the country? Are you saying that the NEP should really be the Never Ending Policy?

    Utter bollocks! Its not “…..certain section of the population”….its the majority! NEP has been put in place DEMOCRATICALLY, by the wishes of the majority to serve the need of majority.

  29. In 1960, Malaysia was the country with the highest GDP in Asia besides Japan. Malaysia is blessed with many natural resources such as petroleum, palm oil and others. With massive petroleum excavations, Malaysia is what it is today but the oil supplies are running low by 2015. Also over the years, we have seen Malaysia declining in its position as a major economic power in Asia. With massive liquidity in the global markets, global investors are pouring in FDIs in Vietnam, China and India and the quality of their manufacturing products in Vietnam for instance is soon to surpass Malaysia. Vietnam for instance sign FTAs with global economic powers for win win agreements. It is a known fact that you can only do well in agreements by looking at win win situations as well as looking at how to efficiently allocate resources to minimize waste.
    In relation to our trades with EU

    In terms of merchandise trade, Malaysia’s exports to the EU amounts to roughly €15 billion (RM70.2 billion) and Malaysia’s imports from the EU to close to €10 billion (RM46.8 billion) a year. Malaysia records a regular trade surplus with the EU. Simply said, EU pays the wages of some of our workers in Malaysia.

    In 2005, specifically, Malaysia’s exports to the EU amounted to €16 billion (RM74.68 billion), its imports from the EU to €9.2 billion (RM43.06 billion) , resulting in a trade surplus in favor of Malaysia of €6.8 billion (RM31.83 billion).

    On the official website of the Delegation of the European Commission to Malaysia, it is stated that:

    From the EU’s perspective, the importance of Malaysia as a trading partner has fallen over the years as well. Whereas in 2001, Malaysia accounted for 1.7% of EU’s total imports and 1.1% of EU’s total exports, the percentages have fallen to 1.4% respectively 0.9% in 2005.

    Malaysia is the EU’s 18th largest source of imports and 28th largest destination for exports. Among ASEAN countries, Malaysia is the EU’s 2nd largest trade partner after Singapore.

    If we can not find win win situations with EU and EU chooses to divest in Malaysia, we are looking at a situation of continued decline in Malaysia as an economic player in Asia. Similarly, this trend is happening with our trades with USA and other countries. The crux of the matter is – are we doing things better and more efficiently or not. If we are continually seeing more buildings falling down, more ceiling and roofs dropping, more burst pipes, why are we so darn stupid to give contracts to the same incompetent contractors when we can do the work better and cheaper. In economic logic, it makes sense to give preference to companies that reinvest in Malaysia and who are long term players. Hence, if there are local suppliers and manufacturers who can do the work for cheaper and better – why are we not ensuring more transparent contract allocations in Malaysia?

    The following are affirmative action that needs to be done
    1. More transparent contract allocations to companies with good track record regardless of race.
    2. Punish companies with bad record.
    3. More efficient allocation of resources by reducing discounts and subsidies to the rich such as discounts for home purchases above RM300,000. Discounts and subsidies for the poor need to be increased by channeling these discounts to the poor.
    4. Have no quota when giving contracts or equity. Produce a Success Metrics or Evaluation Metrics for all government agencies to ensure the Government lead by example. The government start distributing a circular that only the best contractors get the job based on the list of criteria of success measurement based on time of delivery, cost and quality of service.

    If in the course of meeting these 4 objectives, NEP needs to be scrapped -then it is for the good of Malaysia.

    What should these four be prioritise and the expense of improving socio-economic development and reducing poverty level programs? Utter bollocks!

    What the nation achieved with EU MUST be carried out parallel and complement improving socio-economic development, reduction of poverty and provide the infrastructure the needs of rural Malaysia, NOT CONTRADICT!. The New Economics Policy (NEP) is an agenda for the rakyat. It is necessary. Improving trade status and position with EU is a vocation. At any time one shouldn’t discard the need of the household at the expense of business.

    Malaysians should make EU people understand why we have NEP, NOT agree with them!

  30. Please also bear in mind that the rights of the indigenous Bumiputera as protected in the Constitution is not abused when efficiency and transparency is sought after. The constitution defines the right of the indigenous to receive aid in education, training and work opportunities in the government sectors – to an extent that other rights of other communities are not affected. That means the rights of the Bumiputera are protected and should be aided to the extent – of not being overboard and carried out in the good welfare of all Malaysians. The poor and uneducated should continue to be aided to ensure sustainable growth to the country. Scraping NEP if Malaysia is not pursuing more efficient ways of allocation is not the same as abusing the rights of the Bumiputera.

    Sustainable growth and development should always be sought. The key is to ensure we grow, protect the environment, feed the poor, maintain our culture and still do everything as efficiently as possible to ensure we are more successful than our competitors.

  31. You not only have faulty views about the sociopolitical implications of NEP but you are stubborn as well.
    That is all 🙂

    On the contrary. I am very determined that I am right and my views are the same views representing the majority. That is why I have the confidence to write this story where else other people just come ONLY to shoot it down!

    They failed! 🙂

  32. We should not defend NEP if there are weaknesses. Are you claiming that NEP is faultless? If not, then let us look together at how we can improve NEP so that we can continue to reduce poverty in Malaysia and yet ensure that the resources to do so are carefully allocated to reduce wastage. Sustainable development is important where the rakyat needs to be fed well with sound transparent policies. We need a thorough look at NEP to ensure no leakages are made and that the resources are channeled to the rakyat.

  33. Interesting post.

  34. […] Round – EU Official.Rommel has set aside political niceties. I say we do likewise.updates 22 June:Big Dog calls Rommel "kurang ajar" and argues that foreign firms have continued to flourish in the last 37 […]


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